Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Act current to 2014-06-12 and last amended on 2014-01-01. Previous Versions

Marginal note:Provisions applicable to Part

 Subsections 150(2) and 150(3), sections 152, 158 and 159, subsections 161(1) and 161(11), sections 162 to 167 and Division J of Part I are applicable to this Part, with such modifications as the circumstances require.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1994, c. 7, Sch. II, s. 165.

PART X.5PAYMENTS UNDER REGISTERED EDUCATION SAVINGS PLANS

Marginal note:Definitions
  •  (1) The definitions in subsection 146.1(1) apply for the purposes of this Part, except that the definition “subscriber” in that subsection shall be read without reference to paragraph (c).

  • Marginal note:Charging provision

    (2) Every person (other than a public primary caregiver that is exempt from tax under Part I) shall pay a tax under this Part for each taxation year equal to the amount determined by the formula

    (A + B - C) × D

    where

    A 
    is the total of all amounts each of which is an accumulated income payment made at any time that is
    • (a) either

      • (i) under a registered education savings plan under which the person is a subscriber at that time, or

      • (ii) under a registered education savings plan under which there is no subscriber at that time, where the person has been a spouse or common-law partner of an individual who was a subscriber under the plan, and

    • (b) included in computing the person’s income under Part I for the year;

    B 
    is the total of all amounts each of which is an accumulated income payment that is
    • (a) not included in the value of A in respect of the person for the year, and

    • (b) included in computing the person’s income under Part I for the year;

    C 
    is the lesser of
    • (a) the lesser of the value of A in respect of the person for the year and the total of all amounts each of which is an amount deducted under subsection 146(5) or 146(5.1) in computing the person’s income under Part I for the year, and

    • (b) the amount, if any, by which $50,000 exceeds the total of all amounts each of which is an amount determined under paragraph (a) in respect of the person for a preceding taxation year; and

    D 
    is
    • (a) where a tax, similar to the tax provided under this Part, is payable by the person for the year under a law of the province of Quebec, 12%, and

    • (b) in any other case, 20%.

  • Marginal note:Return and payment of tax

    (3) Every person who is liable to pay tax under this Part for a taxation year shall, on or before the person’s filing-due date for the year,

    • (a) file with the Minister a return for the year under this Part in prescribed form and containing prescribed information, without notice or demand therefor;

    • (b) estimate in the return the amount of tax payable under this Part by the person for the year; and

    • (c) pay to the Receiver General the amount of tax payable under this Part by the person for the year.

  • Marginal note:Administrative rules

    (4) Subsections 150(2) and 150(3), sections 152, 155 to 156.1 and 158 to 167 and Division J of Part I apply with any modifications that the circumstances require.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1998, c. 19, s. 59;
  • 1999, c. 22, s. 72;
  • 2000, c. 12, s. 142;
  • 2013, c. 34, s. 338.